1) Apple didn't copy the design to make it's own clock rip-off. It is for a very tiny part of their original product.
2) Apple didn't copy the design to sell more iPhones.
3) The design is famous. It's not like Apple sneakily copied it thinking no one will notice.
4) It's a common "click of the eye" gesture to design-savvy public, like their basing their podcast app to classic 60's design, etc.
So why didn't they license it?
Or it is just another case of Skeuomorphism gone wild. Not everybody who pays attention to design likes that kind of thing and appreciating it isn't making someone "design-savvy" either.
(Disclaimer: I am not an Apple fan.)
As for the design itself, there is the blatant copying of the seconds hand, but otherwise it seems whoever did it took some care to differentiate the apple clock from the original. E.g. how the lengths of the hour and minute hands relate to the radius of the clock and the size of the hour and minute tick marks. Then of course there are obvious implications of being viewed on a tiny 4" screen. Whether that is enough to build a legal defense on, I have no idea.